INFRASTRUCTURE, BASIC/PILLAR INDUSTRIES
In 2012, the Bank's key focus remained on primary areas such as coal, electricity, oil, transportation, agriculture, water resources, telecommunications and public infrastructure. Total loans increased in these sectors by RMB 338.2 billion, accounting for 54.1% of total loan increments for the year. The Bank provided support to national priority projects, including the access routed and infrastructure for coal transport, power grid, national highway network, high-speed rail, metro rail system and new energy power generation.
To achieve the target of energy conservation and emission reduction under the 12th Five-Year Plan, the Bank increased support for comprehensive upgrading of coal-fired power plants. CDB provided financing for a number of projects such as the coal-to-gas project at Tianjin Chentangzhuang Thermal Power Plant, the Jilin Fengman Hydropower Station, the Guanyinyan Hydropower Station on Jinsha River of Yunnan Province, the acquisition of Hong Kong Qingshan Power Generation Company by China Southern Power Grid, and Shanxi Pinglu 200 MW Wind Power Generation. In 2012, new lending to the electric power sector amounted to RMB 88.5 billion, with an outstanding receivable balance of RMB 721.5 billion at year-end.
In 2012, the Bank rigorously channeled funds via different sources to support road construction nationwide. Key projects included the national highway network and the planning of the national road network with a focus on central and western China. The Bank made loan commitments totaling RMB 425.7 billion in 2012, supporting the construction of 9645 km of highways and 3588 km of roads. Incremental loans totaled RMB 123.3 billion in 2012. As of the end of 2012, the Bank had RMB 1088.7 billion outstanding in loans to this sector.
In 2012, the Bank deepened its strategic partnership with the Ministry of Railways in railway construction, rolling stock procurement, bond underwriting and financial advisory services. The Bank provided financing support for the construction of the north-south and east-west national high-speed railway networks, and the inter-regional trunk lines. The Bank also actively supported the initiative of international expansion for the railway industry, by funding the railway network and railway construction for resource development. As of the end of 2012, the Bank's outstanding loans to the railways sector were RMB 451.5 billion.
PETROLEUM AND PETROCHEMICAL
In 2012, the Bank continued its support for the construction of petroleum and petrochemicals facilities- upstream, mid-stream and downstream ĘC to meet the national and commercial needs of petroleum reserves and procurement programs, by working together with China National Petroleum Corporation Group (CNPC) and SINOPEC Group in their debt underwriting, payday loans, and trade financing, as well as supporting their overseas business development. As of the end of 2012, the Bank's outstanding loan receivable balance in this sector was RMB 459 billion.
With a continued focus on coal industry restructuring and resource consolidation, the Bank collaborated with key industry players, including Kailuan Group, Yankuang Group and Huainan Mining Industry, on their industrial restructuring and "Go Global" initiatives. Furthermore, it provided financing support for gas control of coal mines and commercial development of CBM (coalbed methane extraction) industry, as well as projects related to coal-to-oil conversion and coal-to-gas conversion. As of the end of 2012, the Bank's total loans to coal-related projects were RMB 132.6 billion.
POSTAL AND TELECOMMUNICATIONS
In 2012, the Bank continued its support to leading industry players such as China Unicom, China Tietong, China Mobile and China Telecom, in their network expansion and retrofit projects. In addition, the Bank also provided strong support to telecom equipment makers, including Huawei and ZTE Corporation, helping them maintain their leading positions in international markets. As of the end of 2012, the Bank had outstanding loans of RMB 89.5 billion in this sector.
AGRICULTURE, FORESTRY AND WATER RESOURES
Partnering with the Ministry of Water Resources, the Bank contributed to the "leapfrog" jump in the national water conservation initiative in 2012, with total lending of RMB 66.2 billion made during the year. With key financing projects such as the South-to-North Water Diversion, watershed cleanup of the Xin'an River basin and conservation of water resources in Guizhou province, the Bank further cemented its leading position in the marketplace. The Bank also provided significant financing support to industries of animal husbandry, farming, produce processing, forestry and papermaking industries. As of the end of 2012, the Bank's outstanding loans to the agriculture, forestry and water resources sectors totaled RMB 137.7 billion.
The Bank has vigorously promoted public infrastructure building and the new urbanization in China. In 2012, the Bank continued to boost its support for development of civil aviation and urban rail transit systems. It supported the construction of Suzhou Central Plaza, financed the infrastructure and aircrafts for hosting the Youth Olympic Games in Nanjing, and oversees expansion of private construction companies. As of the end of 2012, the Bank's outstanding loans for public infrastructure projects amounted to RMB 1299 billion.
RESTRUCTURING; INNOVATION; UPGRADING
COODINATED REGIONAL DEVELOPMENT
In 2012, the Bank continued to implement its regional development strategy to facilitate rapid development of central and western China through industrial transfer. Loans made to central and western China increased by RMB 345.1 billion during 2012, accounting for 55.2% of new loans of the Bank; loans made to Northeast Industrial Base increased by RMB 70.3 billion, 11.25% of the total new lending; loans to Tibet and four Tibetan-inhabited provinces by RMB 22.4 billion; and loans to Xinjiang, by RMB 40.1 billion. CDB's growth in lending for the regions exceeded that of all other financial institutions in 2012.
INDUSTRIAL RESTRUCTURING AND UPGRADING
Industrial restructuring and upgrading is an integral part of China's economic transformation. In 2012, the Bank provided project financing for steel, coal, mining, non-ferrous metals and auto-manufacturing industries as part of their industrial restructuring and technological transformation. The Bank also boosted support for the development of high-end equipment manufacturing in the area of fine chemicals, digital control machinery and engineering machinery, by investing in the projects of Fangchenggang Base of Wuhan Iron and Steel, technology upgrading of Shanxi Zhongtiaoshan Copper Company, and the Tibet Yulong Copper Mining Company.
STRATEGIC EMERGING INDUSTRIES
In 2012, the Bank supported development of strategic emerging industries and advanced manufacturing through innovation in financing structures and breaking financing bottlenecks for key players. It also promoted the integration and development of the related industry chain, and bolstered its efforts to players with high growth potential, such as Xinwei Telecom, BGI and GoerTek. Furthermore, the Bank established the Ship Finance Centre, to promote the development of industries in shipping, shipbuilding and oceanic engineering equipment manufacturing. In addition, it provided financing support to key initiatives in the sector, including remote sensing satellites, aircraft engine manufacturing, and recycling facilities of Xinjiang Zhongtai Chemical.
ENVIRONMENTAL PROTECTION, ENERGY CONSERVATION AND EMISSION REDUCTION
To support the development of low-carbon cities in China, the Bank has implemented the national green-credit policy that favours the environmentally friendly projects in its lending practice. In 2012, it lent to projects in the areas of the circular economy initiative, watershed management, sewage treatment, environmental protection, technology upgrading for energy-saving, and renewable resources. As of the end of 2012, the Bank's outstanding loans to environmental protection and energy efficiency projects stood at RMB 845.3 billion, up 28% year-on-year.
In 2012, the Bank strengthened its cooperation with the Ministry of Culture, the General Administration of Press and Publication, and the State Administration of Culture Heritage to facilitate the development of China's cultural industry, with special lending support to key industry players. During the year, the Bank was mainly focused on supporting the areas of historical and cultural heritage protection, public cultural infrastructure, the conversation of analogue-to-digital for radio and TV broadcasting and cultural tourism. As of the end of 2012, the Bank had outstanding loans totaling RMB 143.8 billion to the cultural industry, making it the leading lender to this sector.
LIVELIHOODS AND SOCIAL WELL-BEING
Improved living standard is high on China's social development agenda. In 2012, the Bank further enhanced its collaboration with competent authorities and local governments, channeling resources to support this nationwide initiative. The Bank financed housing, healthcare, job creation, education, agricultural and rural development. In addition, emergency loans of RMB 6.3 billion were issued for disaster relief.
In 2012, the Bank lent RMB 135 billion in loans to support construction under the government's new rural community initiative, which provided financing for rural infrastructure, and to leading industry players, and local healthcare and education programs. As of the end of 2012, the Bank had outstanding loans totaling RMB 676.7 billion for rural development.
LOW-INCOME HOUSING PROJECTS
In 2012, the Bank maintained its support to the low-income housing sector, with a focus on social housing. Through synergies achieved with its subsidiaries, the Bank helped alleviate financing constraints. It supported public rental housing in Wuhan, the rebuilding of shanty areas in Harbin and social housing in Qingdao. The Bank's incremental loan growth to social housing in 2012 totaled RMB 116.6 billion, accounting for 65% of total market share, and amounting to a RMB 100 billion increase in the Bank's lending to this sector for each of the two years.
In 2012, the Bank supported the development of China's real economy and strived to provide solutions for financing difficulties faced by small and micro-enterprises. It created a website for small- and micro- business financing in partnership with Alibaba, and helped build a peer-to-peer financing platform in Jiangsu, among other locations. The Bank also created innovative lending products, such as the microloan syndication in Sichuan, loans for youth entrepreneurs in Henan, and micro-poverty alleviation loan in Guizhou. Incremental loans to the SME-financing sector amounted to RMB 264.5 billion in 2012, a 16.13% increase from prior year. The Bank's lending efforts benefited close to 20 industries, including manufacturing and farming (of crops, forest, livestock and fisheries), and 1.87 million small to medium-sized enterprises and self-employed vendors; and helped to create 4.87 million jobs. The China Association of Small and Medium Enterprises named the Bank "Best SME Lender".
Student loans provide an effective means to educational equity, and have been a key component of our long-term support to social development. In 2012, the Bank lent RMB 12 billion in student loans, supporting 2.13 million students, and representing 85% market share. The accumulative lending in this sector amounted to RMB 42 billion, covering 25 provinces and cities, 1767 counties and districts, 2594 colleges and universities, and assisting 7.74 million students from financially disadvantaged families.
In 2012, the Bank broadened its collaboration with foreign governments, enterprises and financial institutions, on the basis of equality and mutual benefits. During the year, it made significant progress in cooperation under the frameworks of the Shanghai Organization Interbank Association and China-ASEAN Interbank Association. It further enhanced its alliance with other BRICS countries and established the China-Portuguese Fund. The Bank continued to invest in a number of large international projects to support the development of infrastructure, agriculture, energy and social sectors in those countries with which it engaged, and to assist Chinese enterprises in their "Go Global" endeavours. The Bank made positive contribution to help the world economy get back on a healthy track. As of the end of 2012, the Bank had outstanding foreign currency loans of USD 224.5 billion, and an offshore yuan-denominated loan balance of 72.6 billion. With such large-scale lending in place, the Bank further cemented its status as a pillar of overseas investment and financing in China. With formal relationships being set up with 638 correspondent banks in 101 countries/regions, the Bank has established a global network of correspondent banks to support its international business.
The Bank has always concerned itself with the needs of developing countries, and thus implemented a "Training First" policy in its international collaboration programs. Under this policy, the Bank organizes various experience-sharing workshops and talent development programs to enhance mutual understanding and trust. As of the end of 2012, a total of 4047 trainees from Asia, Africa and Latin America have attended various seminars organized by the Bank. In addition, the Bank offers opportunities to talented youth from developing countries to study in China, through funding provided by the CDB Scholarship, advancing cross-cultural exchanges.